Last week, a report came out that Google had acquired AdMeld for around $400 million. While the price has not been confirmed, Google did officially announce the acquisition today.

Google’s VP of Display Advertising, Neal Mohan, wrote on the Official Google Blog:

To help major publishers get the most out of the rapidly changing and growing display ad landscape, we’ve signed an agreement to acquire Admeld, a New York-based yield optimization firm.

There are lots of different ways that they can sell their display ad space. Often, they’ll sell space directly to advertisers or agencies, using an ad server to actually deliver and measure the ads (like Microsoft’s Atlas, AOL’s AdTech, DoubleClick’s DFP, Yahoo’s APT, OpenX, Zedo, 24/7 Real Media and others). Alternatively, they’ll make their ad space available indirectly—to hundreds of ad networks (like Advertising.com, Specific Media, Collective, 24/7, ValueClick, Vibrant, AdSense, Undertone and others), each with thousands of advertisers, or to various advertising exchanges or technology platforms (like Yahoo’s Right Media, OpenX, DoubleClick Ad Exchange, ContextWeb, AdBrite, AppNexus and others) that match them with ad buyers (like ad networks and demand side platforms) who represent advertisers, in real-time marketplaces.

Some publishers also work with a “yield optimization” provider (such as Rubicon Project, Pubmatic and others) that supplies technology to select ads from across these many indirect options, while providing personalized service and support. In a very complex and rapidly growing display ad landscape, that’s what Admeld does.

…

By combining Admeld’s services, expertise and technology with Google’s offerings, we’re investing in what we hope will be an improved era of flexible ad management tools for major publishers. Together with Admeld, we hope to make display advertising simpler, more efficient and more valuable, provide improved support and services, and enable publishers to make more informed decisions across all their ad space. These are all things our publisher partners have been asking us to further invest in. Of course, Admeld will continue to support other ad networks, demand side platforms, exchanges and ad servers, to yield the best possible results for publishers.

AdMeld CEO Michael Barrett led global sales at Fox Interactive Media, Co-Founders Ben Barokas and Brian Adams held senior positions at AOL, and Chief Media Officer Jason Kelly was VP of Strategy & Revenue for Time Inc. Digital. It is this veteran leadership that the company plays up in its pitch.

“When I joined Admeld as CEO about 13 months later, the company had dozens of clients, most of whom reported at least a 100% increase in their revenues from ad networks,” says Barrett on the AdMeld Blog. “What’s more, the team had learned that technology, while the foundation of Admeld, wasn’t the full solution. In truth, publishers didn’t want just another platform. They wanted a partner who understood their business and could help them use technology to navigate this increasingly complex space. This mix of expertise and technology still resonates with publishers today, and it will always be the cornerstone of Admeld’s approach.”

“Over the last two years in particular, display advertising has undergone more innovation than in the previous ten years combined,” he adds. “RTB, data management, private exchanges: the space has come a long way, but despite all the progress, it still has a long way to go. Our goal, together with Google, is to continue to move display advertising forward and ensure that publishers stay on the cutting edge.”

The deal must still go through regulatory review. During this time, the two companies will remain independent from one another.